Businesses believe Panama heading for “apocalyptic social chaos”
A nationwide survey of micro, small and medium-sized businesses (MSMEs) which provide 70% of the country’s jobs, reveals that 91% believe that the country is heading for apocalyptic social chaos
The survey by the Federation of Chambers of Commerce (Fedecamaras), between July 24 and August 5revealed that 96% are not operating normally.
The sample included 817 companies, 70% are independent entrepreneurs and micro-companies (less than 10 workers), 25% are small companies (11 to 49 workers) and 5% are more than 50 workers.
83% of the MSMEs surveyed have been operating for more than 2 years and 91% are formalized.
According to the results of the survey, only 4% operate normally and 96% of the businessmen surveyed who said they do not operate normally said they have had to lay off workers, operate with less staff, reduced salaries, or apply telework.
Meanwhile, 40% closed temporarily or permanently and only 15% of the companies surveyed will re-open with all their workers; 47% will reopen with fewer workers, and 37% will reinvent themselves.
Only 8% of MSMEs have sufficient resources to meet their commitments and 15% have already gone bankrupt.
Two out of every three entrepreneurs need up to $25,000 to reactivate their businesses. Some 80% of the MSMEs surveyed think that the Government’s plans will not help to improve of their companies or will reactivate the economy, 70% question the health policies adopted by the authorities, and 83% answer that the economy simply is not going to reactivate.
The high level of uncertainty and pessimism prevailing in the sector has led to an urgent call to the Government to act immediately based on the realities, in the face of the imminence of a possible economic disaster.
The Federation considers that the National Government should reorient the productive sector towards opening in harmony with the health guidelines or protocols requested by the Ministry of Health (Minsa), for each sector or economic activity.
